Sri Lanka to establish zero-waste biomass cinnamon processing centre in Ruhuna

Tuesday July 14, 2026 3:30 pm ECONOMYNEXT — Sri Lanka’s cabinet has approved a joint initiative to establish a modern Centralized Zero-waste Biomass Cinnamon Processing Centre at the University of Ruhuna to address long-standing supply chain inefficiencies. Speaking at the weekl…

Tuesday July 14, 2026 3:30 pm

ECONOMYNEXT — Sri Lanka’s cabinet has approved a joint initiative to establish a modern Centralized Zero-waste Biomass Cinnamon Processing Centre at the University of Ruhuna to address long-standing supply chain inefficiencies. Speaking at the weekly cabinet press briefing, Cabinet Spokesperson Nalinda Jayatissa announced that the project aims to resolve major constraints affecting regional spice producers, particularly smallholders. Accordingly, the cabinet decision highlighted that the local spice sector requires modernized infrastructure to overcome persistent production hurdles. “The Sri Lankan cinnamon industry, which is dominated by small-scale growers in Matara and Galle districts, continues to face a number of common challenges such as high processing costs, hygiene standards and minimal use of biomass waste,” the cabinet note said. As a direct solution to these industry constraints, the new facility will be set up at the Mapalana Agricultural College land premises, which belongs to the Faculty of Agriculture at the University of Ruhuna. The Cabinet of Ministers greenlit the proposal to launch the facility as a collaborative state venture between the Ministry of Science and Technology, the Industrial Technology Institute (ITI), and the University of Ruhuna. The infrastructure roll-out is structured to minimize waste and maximize the commercial utility of cinnamon biomass. The entire project is expected to be implemented as a four-phase development project spanning a total period of 27 months, aimed at uplifting global compliance standards and reducing operational overheads for regional growers. (Colombo/Jul14/2026)

Tuesday July 14, 2026 2:53 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved a five-year national policy to combat money laundering and terrorism financing, minister Nalinda Jayatissa said. The “National Policy on Prevention of Money Laundering, Countering the Financing of Terrorism, and Countering the Financing of Proliferation of Weapons of Mass Destruction 2026-2030” is built on the findings of Sri Lanka’s third National Risk Assessment (NRA) conducted by the Central Bank’s Financial Intelligence Unit (FIU) over the 2024/25 period. The assessment aligned with strict global standards set by the Financial Action Task Force (FATF). These policies follow a string of cyber security issues within the banking system, including a US$2.5 million fraud of treasury funds related to foreign debt repayments. Sri Lanka’s battle against illicit capital is anchored in primary legislative frameworks, including the Prevention of Money Laundering Act and the Financial Transactions Reporting Act (FTRA). (Colombo/July14/2026)

Tuesday July 14, 2026 2:47 pm

ECONOMYNEXT — Sri Lanka’s cabinet has approved signing a tripartite agreement to implement a programme promote energy‑efficient and climate-resilient buildings across the island, backed by a 924,063 euro grant from Germany, minister Nalinda Jayatissa said. The initiative will be rolled out under a Framework Agreement on Technical Cooperation between Germany and Sri Lanka, with funding covered by a financial grant of 924,063 euros, or around 314 million rupees. The primary focus of the project is to strengthen the country’s structural and regulatory approach to green infrastructure. “The main objective of the programme is to assist Sri Lanka in obtaining policies, institutional frameworks and technical assistance for maintaining energy-efficient and climate-resilient buildings,” Jayatissa said. The programme will be implemented by the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH), with progress and execution monitored by the Ministry of Energy and the Sustainable Energy Authority. The cabinet has greenlit the proposal to sign the official tripartite agreement, Jayatissa said, and the pact will be signed between the Ministry of Energy, the Department of Foreign Resources, and representative of GIZ. The technical assistance and policy framework provided through this grant are expected to help Sri Lanka transition toward more sustainable urban development and climate-resilient engineering standards in the construction sector. (Colombo/Jul14/2026)

Tuesday July 14, 2026 2:33 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to obtain around 57 million dollars from the Asian Development Bank, the European Union and The Japanese Fund for the Joint Crediting Mechanism (JFJCM) for the Rooftop Solar Aggregation and Virtual Net Metering Project, minister Nalinda Jayatissa said. The project was identified as a priority project with the aim of enhancing small and medium scale renewable energy projects by providing a solution for the effective use and distribution of solar energy to independent power producers, he told reporters. Cabinet approval was given in November last year to seek financing through a Memorandum of Understanding with the Asian Development Bank and other agencies. The negotiations for obtaining the relevant loans and grants from the ADB, EU and JFJCM have concluded. Based on the agreement reached in those negotiations and subject to the terms and conditions of the ADB loan, the Cabinet approved the proposal to enter into Loan and Grant Agreements with the ADB for a loan of 35 million dollars from its concessional general capital resources; a grant of 15.4 million euro from the EU and a grant of 5.5 million dollars from JFJCM, Jayatissa said. (Colombo/Jul14/2026)

Tuesday July 14, 2026 2:09 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to award the tender to expand the Bandaranaike International Airport departures terminal to Maga Engineering (Pvt) Ltd for 7.26 million dollars (excluding VAT) and 3.77 billion rupees (excluding VAT). “This money will come out of the general treasury,” minister Nalinda Jayatissa told reporters. The Cabinet on February 9 last year approved the implementation of the procurement process for the construction of a new building with 36 check-in counters and 6 aircraft access gates from the passenger terminal. Bids were invited under the International Competitive Procurement Procedure to select a suitable contractor, Jayatissa said, and 3 bids were received. “After evaluating the bids, based on the recommendation submitted by the High-Level Standing Procurement Committee, Cabinet approved the proposal to award the contract to the lowest responsive bidder, M/s Maga Engineering (Pvt) Ltd.” (Colombo/Jul14/2026)

ADB has approved game-changing reforms to crisis response tools to help governments act quickly, protecting people, keeping essential services running, and strengthening energy and food security.

Tuesday July 14, 2026 1:30 pm

MANILA, PHILIPPINES (14 July 2026) — The Asian Development Bank (ADB) is putting faster and more flexible crisis response tools in place to help its members in Asia and the Pacific protect people, keep essential services running, and manage energy supply and food price shocks. “Ongoing instability from the Middle East conflict is putting pressure on governments and people across the region, raising fuel bills, food prices, borrowing costs,” said ADB President Masato Kanda. “ADB is moving quickly, before shocks become deeper crises. These tools will deliver support faster, give governments more room to act, and keep the focus where it belongs: protecting people, preserving stability, and building stronger energy and food systems.” ADB’s Board of Directors today approved Enhancing ADB’s Crisis Response Modalities to Address Energy Supply and Food Price Shocks, a policy paper that updates three existing ADB financing tools: the countercyclical support facility, contingent disaster financing, and emergency assistance loan. The changes are designed to help ADB respond to supply shocks that can build over time, spread through fuel and food markets, raise inflation, strain public budgets, and disrupt essential services. The countercyclical support facility will now more clearly cover energy supply and food price shocks. This means ADB can provide fast budget support when members face severe economic stress from higher energy and food prices, shortages, import disruptions, or fiscal pressure. The facility can support targeted social protection, critical public spending, continuity of public services, and measures that strengthen energy and food security, while maintaining requirements for sound macroeconomic management and debt sustainability. ADB’s contingent disaster financing will also be expanded to cover energy- and food-related emergencies. Under this tool, ADB works together with its members to undertake upstream reform measures which build resilience and disaster preparedness. This unlocks financing before a crisis, which can be drawn down quickly when agreed conditions are met. Under the new approach, disbursement can be triggered by an official emergency declaration or by clear economic impacts, such as a sharp rise in fuel and food import bills, a worsening current account balance, or significant energy- and food-related inflation. The framework will allow more flexibility for fragile and conflict-affected situations and small island developing states. The emergency assistance loan will be updated to cover energy-related emergencies, in addition to its existing coverage of food-related emergencies. This will allow ADB to support urgent action even when a crisis does not destroy physical infrastructure but still threatens lives, livelihoods or essential services. ADB will use rapid impact assessments to identify urgent needs, including disruptions to energy and food supplies, rising service delivery costs, and risks to health, transport, education, water, utilities, and other public services. ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Tuesday July 14, 2026 1:05 pm

ECONOMYNEXT – Sri Lanka has launched an international tender for a large‑scale battery energy storage project, its Board of Investment has said, aimed at strengthening the country’s power grid. The National System Operator (Pvt) Ltd, under the Ministry of Energy, has launched an international competitive bidding process for the establishment of a 250 MW/1000 MWh Standalone Battery Energy Storage system structured as 10 MW/40 MWh AC capacity projects across 25 grid substations island-wide. The project will be on a build, own and operate (BOO) basis, the BoI said. “This is a significant opportunity for global and local developers to participate in Sri Lanka’s energy storage transition and support grid stability as the country scales up renewable integration.” The 15-year energy storage agreement will see connection at 33kV across 25 substations, including Ambalangoda, Ampara, Bolawatta, Chunnakam, Hambantota, Kurunegala, Matara, Galle, Monaragala and other locations. The proposal submission deadline is August 14, by 10.00 hrs. RFP documents will be available until August 13, 10.00 hrs. The fee is 150,000 rupees for locals and 500 dollars for overseas investors.

⚡ Sri Lanka Opens International Tender for 250 MW/1000 MWh Battery Energy Storage SystemThe National System Operator (Pvt.) Ltd., under the Ministry of Energy, has launched an international competitive bidding process for the establishment of a 250 MW/1000 MWh Standalone… pic.twitter.com/XEQOIZZYKf — Board of Investment of Sri Lanka (@Investin_SL) July 14, 2026

Inquiries can be made at re_escp@nso.lk (Colombo/Jul14/2026)